The Impact of Foreign Direct Investment on Economic Growth in SADC Economies (2011-2021) · Electronic Theses and Dissertations

Author: Ndlovu, Blessing
Title: The Impact of Foreign Direct Investment on Economic Growth in SADC Economies (2011-2021)
Abstract: The aim of the study was to assess the effect of foreign direct investment (FDI) on economic
growth in the Southern African Development Community (SADC) economies. In doing so, the
study employed a panel data set of 5 SADC countries covering the period from 2011 to 2021,
and used econometric techniques to analyze the relationship between FDI and economic
growth. Also, the study used a panel data approach in estimating the coefficients of the
variables used. The study used economic growth as a dependent variable. FDI, human capital,
trade openness and exports were the explanatory variables used in the study. A pooled model
was used to assess the effect of FDI on economic growth. The findings of the study suggest
that the coefficient of FDI is statistically insignificant. This implies that there was no effect of
FDI on economic growth in SADC countries during the study period. The study therefore
recommended that the governments of SADC countries supplement FDI policies with other
policies like exports incentives so as to stimulate growth.
Date: 2023
Publisher: BUSE
Keywords: Foreign Direct Investment
Supervisor: N/A